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New Gear Lets ISPs Track Users and Sell Targeted Ads; More Players, Privacy Fears. CenturyTel's system allows it to observe and analyze the online activities of its Internet customers, keeping tabs on every Web site they visit. NebuAd takes the information it collects and offers advertisers the chance to place online ads targeted to individual consumers. This technique -- called behavioral targeting -- is far more customized than the current method of selling ads online.

The technology does raise privacy issues. The Internet-service providers often know other information about consumers, such as their names, locations and age and income ranges, which can be very valuable to potential advertisers, especially when combined with Web browsing habits.